2008 also showed a complete reversal in the market. In 2007, at the onset of the credit crunch, sales of homes to first-time buyers suffered greatly, while the only portion of the market remaining unscathed was the million-dollar plus sector. Then in 2008 when the flood of bank-owned and distressed sales overtook the market, sales of homes to first-time buyers saw a surge, while sales in high-end markets suffered.
When considering median home prices, the most significant declines occurred in the lower end of the market, while high end properties fared much better.
In the La Jolla and Rancho Santa Fe areas of San Diego County, home sales fell nearly 29% in La Jolla and just over 24% in Rancho Santa Fe; these figures were reported while total home sales throughout the county saw over a 20% increase throughout 2008. In La Jolla, the average median price was down just over 14% and in Rancho Santa Fe the decrease was barely 1%.
County cities like Escondido and Oceanside experienced home sales increases of nearly 67% and nearly 48% respectively. The median home price fell just over 33% and thirty percent.
Experts predict that home prices will "bottom out" as the inventory of homes in foreclosure and short sale decreases. The current increase in sales will help along with new government programs to assist homeowners in the avoidance of foreclosure.
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